True. Fidelity was mining bitcoins for years before other institutional investors were involved and they likely hold massive reserves. I just hope they’ve insulated themselves against the risk.

Most banks do. They are transferring the risks to their customers.

Cryptocurrency trading can be a legitimate way to diversify risk. Of course people should know what they're getting into before they start and it's very likely to fail but I trust institutional traders more than anyone else to actually make money off of cryptocurrencies.

I believe that Fidelity allows investing in bitcoin, not crypto in general.